WMM(002149) 申万宏源·2024-07-25 06:01Investment Rating - The report initiates coverage with a "Buy" rating for the company, indicating a positive outlook for its future performance [53][68]. Core Insights - The company is positioned as a leader in the rare metal new materials industry, leveraging its strong research foundation from the Northwest Nonferrous Metal Research Institute. It has a diversified product portfolio that includes titanium and titanium alloy processing materials, layered metal composite materials, precious metal materials, metal fibers and products, tungsten and molybdenum materials, rare metal equipment, and high-end consumer products [64][68]. - The company achieved a revenue of 3.226 billion yuan in 2023, reflecting a year-on-year growth of 9.69%, with a net profit of 196 million yuan, up 6.11% year-on-year [64][68]. Summary by Sections 1. Company Overview - The company has a multi-faceted business model with eight major business segments, primarily serving industries such as aerospace, nuclear power, environmental protection, marine engineering, petrochemical, metallurgy, and electricity [64][68]. - The company has seen steady revenue growth from 2.006 billion yuan in 2019 to 3.226 billion yuan in 2023, with a compound annual growth rate (CAGR) of 12.61% [44][68]. 2. Titanium Alloy Sector - The company focuses on the titanium alloy sector, with a significant portion of its revenue derived from titanium products, which accounted for approximately 57.14% of total revenue in 2023 [38][68]. - The domestic production of sponge titanium is expanding, with China being the world's largest producer, contributing to a stable pricing environment that alleviates cost pressures for titanium alloy products [24][26][68]. 3. Subsidiary Contributions - The company's subsidiaries, such as Tianli Composite and Xino Precious Metals, play crucial roles in their respective markets, with Tianli focusing on layered metal composites and Xino being a key supplier of silver alloy control rods for nuclear reactors [65][68]. - The layered composite materials segment is expected to maintain stable growth due to increasing demand in the chemical and nuclear power sectors [56][68]. 4. Financial Projections - The company forecasts net profits of 250 million yuan, 330 million yuan, and 425 million yuan for the years 2024 to 2026, with respective growth rates of 27.2%, 32.2%, and 28.8% [53][54][68]. - The projected revenue for 2024 is 3.877 billion yuan, with a year-on-year growth rate of 20.2% [54][68].